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Chartered AccountantsHMRC consults on replacement to wear and tear allowance for property rental
HMRC has announced a consultation on changes to the ‘wear and tear allowance’ applicable to property businesses announced at Summer Budget 2015, which will see the current annual allowance of 10% replaced with a relief based on the cost actually incurred in replacing furnishings report Harris & Co chartered accountants Northampton.
The new relief will apply to landlords of unfurnished, part furnished and furnished properties, but not to ‘furnished holiday letting’ businesses (FHLs) and letting of commercial properties, because these businesses receive relief through capital allowances instead.
Under the new replacement furniture relief landlords of all non-FHL residential dwelling houses will be able to claim a deduction for the actual cost of replacing such things as furniture, furnishings, appliances and kitchenware provided for the tenant’s use.
